Panicked Plaintiffs Dismiss Bad Faith Claim

Smith Freed & Eberhard Partner, Rob May, was retained to defend an insurance company in a bad faith claim.

The plaintiffs filed a breach of contract and bad faith claim against their insurance company alleging they were unfairly denied compensation on a theft claim. In May, 2012, the insureds reported theft of their personal property while they were on vacation. After a day of shopping, the insureds stored their purchased items in their car while they went to dinner. When they returned to their car, they noticed their car doors open and all of their property had been stolen. They immediately filed a police report and the next day filed a claim under their homeowner's policy. The insured claimed a loss of nearly $50,000.

In May, 2013, the insureds sued their insurance company for breach of contract, violation of the Washington's Insurance Fair Conduct Act, and violation of the Consumer Protection Act, claiming $32,000 was still owed to them on their claim. The insurer immediately sought Rob's help. After identifying both factual and logical inconsistence in the insureds' story, Rob submitted very specific discovery requests to the plaintiffs. After the interrogatories and requests for production were served, and only three months after the complaint was filed, the plaintiffs contacted the court and dismissed their case without prejudice.